Digital Payment Security and Government Regulations

Abstract

Digital payment systems are becoming an important part of modern society. The use of online transactions has increased rapidly because of smartphones, internet banking, and government initiatives such as digital India and cashless economy programs. People use UPI, mobile wallets, QR-code systems, debit cards, and internet banking for daily financial transactions. Digital payments provide speed, transparency, convenience, and easy access to banking services. However, increasing digitalization also creates cybersecurity risks. Hackers and cybercriminals use phishing attacks, malware, fake websites, identity theft, and otp fraud to steal sensitive information and money from users. This research paper explains the growth of digital payment systems, major cybersecurity threats, security technologies, government regulations, and sustainable business practices. The paper also highlights the role of rbi, information technology act 2000, and ai-based fraud detection systems in maintaining secure digital transactions. The study concludes that cybersecurity awareness, strong government policies, and advanced technologies are essential for creating a safe digital economy.